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U.S. lawmakers introduce bill to address AI chip smuggling
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U.S. lawmakers introduce bill to address AI chip smuggling
May 26, 2025 8:37 AM

SAN FRANCISCO, May 15 (Reuters) - A bipartisan group of

eight U.S. lawmakers introduced a bill on Thursday that would

require makers of artificial intelligence chips such as Nvidia ( NVDA )

to include technology to verify the location of their chips

before exporting them.

The Chip Security Act introduced in the U.S. House of

Representatives aims to address reports of U.S.

export-controlled AI chips being smuggled into China. U.S.

officials across presidential administrations have sought to

clamp down on their export to China, but Reuters and other news

organizations have documented how some of those chips have

continued to flow.

"In order for the United States to maintain our technological

advantage, we must employ safeguards to help ensure export

controls are not being circumvented, allowing these advanced AI

chips to fall into the hands of nefarious actors," Rep. Bill

Huizenga, a Michigan Republican who introduced the House bill,

said in a statement.

Sen. Tom Cotton, an Arkansas Republican, introduced a similar

bill in the U.S. Senate last week.

The House bill was co-led by Rep. Bill Foster, an Illinois

Democrat, who was a physicist before becoming a legislator and

designed several of his own chips during his scientific career.

"I know that we have the technical tools to prevent powerful AI

technology from getting into the wrong hands," Foster said in a

statement.

The House bill comes after President Donald Trump's

administration rescinded a rule enacted by predecessor President

Joe Biden that would have regulated the flow of advanced AI

chips around the world. The Trump administration has not yet

announced a replacement rule.

But Trump this week toured the Middle East, where he announced a

spate of deals to send AI chips to countries in the Middle East,

despite growing opposition from some inside the U.S.

government.

In addition to Foster and Huizenga, also co-leading the

House bill are House Select Committee on China Chairman John

Moolenaar, a Michigan Republican, and Ranking Member Raja

Krishnamoorthi, an Illinois Democrat. Reps. Ted Lieu, California

Democrat; Rick Crawford, an Arkansas Republican who chairs the

House Intelligence Committee; Josh Gottheimer, a New Jersey

Democrat; and Darin LaHood, an Illinois Republican were

co-sponsors.

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